Significant positive cash flow
is headed dynaCERT's way as the first 10,000 units are expected
to generate US$67.5 million and the Company is working
on 60% gross margin profit. In the interview the CEO states
"we're expecting to ramp the production up with capacity in that
facility to 6,000 units per month by the end of the second
quarter of this year."

NEW
YORK, NY, January 6, 2017 /Sector Newswire/ - dynaCERT Inc. (TSX-V: DYA) (OTC: DYFSF)
is the subject of an advisory from technology analyst Jay Taylor of
Hard Money Advisors Inc., one of his Top Picks for 2017, the
analyst has this week interviewed dynaCERT's CEO providing insight
and opportunity. The Company has documented via an
accredited, government backed, 3rd-party validation process the dramatic effectiveness
of its carbon emission reduction and fuel-saving H2/O2 technology.
Result are exceptional, and dynaCERT has solidified
the respect of engineers in the transportation sector; dynaCERT now
has the ability to alter the flows of H2/O2 and control reductions
in fuel consumption as high as 19.2% and control emission reduction
as high as 40% of greenhouse gases (Carbon Monoxide, Carbon Dioxide,
Nitrogen Oxide) and greater than 65% reduction in particulate matter
in class-8 transport trucks. With the ability to now verifiably
control outcomes for end users of its product, dynaCERT is executing
to meet increasingly strong demand for its new production line of
HydraGen™ units, plus it it has the endorsements from government(s),
transportation industry advocates, and advocates of the
environment. The HydraGen™'s smart-ECU can be programmed for H2/O2
flows that yield desired outcomes and record the savings/reductions
while in operation, providing an audit trail for establishing the
carbon-credits that governments are expected to approve businesses
to qualify for by purchasing and employing the technology.
In an interview with the dynaCERT's CEO, this January 3, 2017, insight is provided on
developments rapidly occurring within the Company. At dynaCERT's
current trading price the market cap is minuscule compared to its
potential, as the reality of
the accomplishments and potential are understood by the marketplace,
Jay Taylor expects shares of DYA.V to rise several multiples higher
than its current price. Analyst Jay Taylor of Hard Money Advisors
initiated coverage (entering December-2016) on dynaCERT Inc. with a
'Buy' recommendation and near-term (12 month|) price target of US$2
to $2.50/share (~$2.60 to $3.30 Canadian), that report may be
viewed at
http://sectornewswire.com/JTaylorDYA112516.pdf online.

The analyst
released the
interview with dynaCERT's CEO, President, and
Director, Jim Payne about the opportunity and developments within dynaCERT
that will be of interest to shareholders. In his summary of
the interview the Analyst stated "dynaCERT
appears set for dramatic growth as it builds monthly capacity for
manufacturing up to 6,000 HydroGen fuel saving units per month in
2017 at its Toronto-manufacturing plant leading to big gains for
shareholders." Significant positive cash flow is
headed dynaCERT's way as the first 10,000 units are expected to
generate US$67.5 million and the Company is working on 60%
gross margin profit. The entire 15 minute January 3, 2017 interview
may be listened to at
https://www.voiceamerica.com/episode/96594/market-outlook-for-2017
online (the dynaCERT interview begins at the 16 minute mark). Below is a transcript of that latest interview:

[Transcription note: Punctuation,
highlights, and
interpretation of audio content was done by the transcriptionist. The Company has not been asked to approve interpretation.]

Jay Taylor: I’m
really pleased to have with me once again
Jim Payne. He’s the President and CEO of
dynaCERT Inc.. ... and dynaCERT Inc. is a
Company that has a proprietary product, its
an add-on for trucks that’s currently being
applied, that reduces fuel consumption very
significantly, and also reduces carbon
emissions very significantly. So it is a
Company that has gained a considerable
amount of favour among the Canadian
government, and people that care about their
environment. It’s also a Company that I
think is going to gain a great deal of
favour among companies that want to reduce
their fuel consumption and save money as a
result of it. So I am really pleased to have
Jim with me again. Thanks Jim for joining me
again today.

Jim Payne: Thanks Jay, it’s always a
pleasure.

Jay Taylor: Always good
to talk with you. For the sake of people
maybe not familiar with your Company, can
you perhaps just explain a bit about the
technology, how it works in lay terms, and
how significant has it been in terms of your
trials and in terms of 3rd-party
verification now of saving in fuel
consumption.

Jim Payne: Sure.
First of all, our technology, we call it the
HydraGenTM. The HydraGenTM
is a very unique patent pending unit that is
a fully computerized on-demand electrolysis
system. What we do is we essentially take
distilled water and we convert it into pure
hydrogen and pure oxygen. What we really do
is we separate the gasses, and that’s
something that really does separate us from
the rest and takes us takes us much farther
ahead than where this Company was years ago.
So by introducing pure hydrogen and pure
oxygen, in trace amounts, to a combustion
engine, and primarily its diesel engines
we’re working with, it does enhance the
burn. It enhances the burn to the point
where it gives a much cleaner burn, it
reduces … [increasing] the fuel economy, it
increases the torque, extends the engine oil
life, and the reduction in emissions. Now
what makes us even that much more special is
over the last year we have spent a lot of
time, a lot of money, developing what we
call the smart-ECU, and this is also patent
pending. The smart-ECU, it is the brains
behind our technology, it communicates with
the engines on-board computer. It’s just
like a smart phone. It is learning all the
time; its learning the habits of the truck,
the altitude, the conditions, the humidity,
so many different things, because one thing
we’ve learnt over the years … there is what
we call a ‘sweet spot’. Now, that sweet spot
means there is just the right amount of
gases being introduced to enhance the burn –
too much hydrogen, or too much oxygen does
just the opposite. But with this smart-ECU,
like I said, it is communicating with the
on-board computer of the truck, it’s
learning, it’s altering the flow of gases.
So it is changing the flow of gases as the
vehicle is running. This is real-time,
on-time changes.

Jay Taylor: Wow,
and was that technology in-play as you had
your 3rd-party verification recently? Was
that technology in-play then? Because your
results have been quite good.

Jim Payne: It
was in-play, we had it as a prototype at
that point, we did go through 3rd-party
validation. We also went through 20 hours of
testing transport trucks on dynos and all
the wind conditions, it was a wind tunnel
that’s the most sophisticated piece of
equipment; there are only two of these in
the world. This one is at the Ontario
Institute of Technology. But, yes we
verified our technology; it showed up to
19.2% improved fuel economy, it reduced the
greenhouse gasses up to 40%, and the heavy
carbons by up to 65%. So a huge huge
difference in the emissions.

Jay Taylor: So
there could be some benefits aside for fuel
savings for trucks, and for other vehicles I
suppose in time, not only from the fuel
savings but also from the carbon taxes if
that’s in-play in the future.

Jim Payne: You
are absolutely right Jay, and that’s the
other thing with our smart-ECU, this is GPRS
[General packet Radio Service]. It has built
in GPRS capabilities which allows the
smart-ECU to be accessed by companies and
licensed end-users, so they can
track/monitor, not just fuel savings and
everything [maintenance], it’s much like a
fleet management system, but it’s also
collecting the data and converting it to
carbon credits.

Jay Taylor: I
guess what this does, this smart-ECU
technology will allow you then on an ongoing
basis to track the performance of your
technology, it will be like an ongoing
verification process or data-points that you
will have that will allow you to know how
well you’re doing. Companies themselves will
be able to determine how well your
technology is helping them.

Jim Payne: That’s
in fact right Jay. What we’ve done is we’ve
developed new back-office and there will be
a small monthly fee for … like large fleet
owners, they’ll have their own fleet
management systems, but this takes the fleet
management system to a whole new era, and it
does exactly what you said; it is measuring
the fuel economy, the fuel improvements, the
emissions, and everything else that a fleet
management does. But this gives them
real-time live data, for a small monthly fee
we’ve created a portal where they go in and
they can gain access at any given time to
anyone of their trucks, log it, track it,
know exactly what’s going on.

Jay Taylor: Alright.
Your focus has been, up to this point, I
think retrofitting trucks with big diesel
engines, and I want to ask you about some
other applications, but first can you give
us sense of the size of the markets for your
HydraGenTM project.

Jim Payne: Oh
for sure. Just here in North America there
is north of 2 million class-8 trucks, now
that’s a transport tuck, then there are 3
times that many is in class-6 and 7 trucks,
that’s the delivery size trucks. So those
are the trucks we are targeting, its
everything from the class-6 to class-8
trucks. Like I said, here in North America
we are talking 10’s of millions of these and
then you get into the India market for an
example. We’ve got a new dealer, and the
India market is actually 3 times the size of
North America. Then you start looking
globally, we are talking millions and
millions. There are actually 15 million
diesel engines produced per year globally.

Jay Taylor: So it’s a
sizeable market and you’ve had 3rd-party
verification, I guess the Canadian
government or Quebec government, is that
right?

Jim Payne: It
is with the Ontario government, it is the
Ontario Institute of Technology/University
here in Ontario. Yes.

Jay Taylor: You
are going to be marketing this product – are
you anticipating, do you have sales now Jim,
or will we be hearing about this sometime
soon?

Jim Payne: Jim,
you will be hearing about it very soon. As
we’ve previously announced, we’ve got a new
manufacturing facility, it is up and running
now. We’ve got our first 500 unit production
run being completed, it’s expected to be
shipped by the first week of February. So we
will be announcing that. Then as far as
production, we’re expecting to ramp the
production up with capacity in that facility
to 6,000 units per month by the end of the
second quarter of this year.

Jay Taylor: Wow,
Okay and you feel that the demand is out
there, you’re distribution system is in
place so you can actually sell that many
units by the second quarter of this year?

Jim Payne: Distribution
there is, you know we’ve already got a
prequalified dealer network here in North
America and the India market and we are
actively interviewing strategic sales firms
in different regions across North America
and Europe with direct contacts to the local
transportation, heavy equipment, and power
generation firms. We are getting calls
from around the globe Jay since we have
announced the validation of our product.
The only thing that was holding us back was
the final smart-ECU, it was developed, we
had to go through a few certification
standards, because like I said, its no
different than a smart phone. This thing is
communicating, sending data world-wide
instantly. So we would not sell or put a
product out until we had that final
certification.

Jay Taylor: And
you have that now. So as I understand it,
your plant up there in Toronto would
produce, you just said 6,000 units a month.
I guess you’ll start out with one shift and
produce 2,000 units, and then as the market
demand is there you’ll ramp up to 3 shifts
per day?

Jim Payne: Well
that’s the way we initially targeted
[shifts], but we’ve actually set up
production line where we can handle 6,000
units a month. So, now obviously we will not
mass produce without sales. We are certainly
not producing these things to just put them
on the shelf.

Jay Taylor: Alright
-- Just briefly, with another minute or two
left here Jim, can you talk about some of
the other applications. I mean where do you
see … first of all, I guess maybe we
shouldn’t be thinking in those terms,
because if you talk about 10’s of thousands
of trucks, that seems like that’s quite a
nut to crack right there. You have potential
growth that is amazing I think just on that
basis. But I know that you are also excited
about some other applications; cars, but
ships, and generators for remote locations,
that sort of thing. Can you take a minute or
two to talk about those applications and how
far down the road might they be for you to
start to think about, or actually start to
try to meet those market demands.

Jim Payne: Well
as far as, again you’re right, I mean the
markets we’re looking at .. we’ve now got
the trucking industry handled, we are ready
to put these things out, but it is now
shipping, rail, and large stationary
generators. It’s something we’ve already
done some preliminary work on. We have just
set up a new R&D plant for that. We have a
substantial amount of government support
here in Canada, both federally and
provincially, so as we move into that arena
... you know, our anticipation is that we
will spend like the next year and a
substantial amount of money to get this
thing done and get it right. Now, because
you get into the shipping, it’s a huge
market. You get into rail, like the trains
and stuff like that, we’ve got train
companies already lining up wanting product
which we don’t have ready for them yet.
And then when you talk about cars, the car
market or the small automotive market, was
not initially a market we we’re looking at
penetrating, but there certainly became a
need with diesel cars and emissions, so we
took it on as just a pet project; we built a
small unit, we have it currently being
tested down in a university, down in the
states, and … it’s not a market we would to
be building. If anything, I would dare say
we prove this technology, we would likely do
a licensing agreement with the end users
where they could build this into their own
vehicles, because I know in the diesel car
industry there are some serious issues with
the emissions.

Jay Taylor: Sure,
just briefly here – with this kind of growth
ahead I know it requires a great deal of
working capital and capital in general, how
is your balance sheet and how are you set
for financing this growth?

Jim Payne: That’s a good questions. I
mean, the Company is virtually a debt
free Company now, we are very well funded.
We are sitting with several million dollars
in the bank, although as we all know you
can go through that very quickly. The nice
thing is as we move into the sales … we get
purchase orders for trucks, they come with a
25% deposit. That 25% deposit pretty much
covers our nut. So I am not overly concerned
as far as the financing for the trucking
industry. Obviously for the research and
development, that is something we’re
perusing government funding for and
government support for. Yes, as far as the
trucking industry, it would be quite a
self-sustaining business venture.

Jay Taylor: One
thing I failed to ask you about Jim, I don’t
know if you can talk about this, if you have
some sense of what your margins are, you
just mentioned the 25% down payment
basically provides a good part of your
costs. Your sense of what you might be able
to do on the margin side per unit of those
upwards of 6,000 units per month.

Jim Payne: Jay,
we work on 60% gross margin. It’s a very
healthy margin, but as you know it’s been
$30 million spent to get us to where we are
at. So it’s time to see a little pay back I
think.

Jay Taylor: Right,
well ‘pay-back’, certainly the market seems
to be anticipating it. The shares have
traded up beautifully from around 10 cents
earlier this year [2016] to 80 cents now.
But if the kind of growth you are talking
about is there Jim I think 80 cents will
look like a very inexpensive stock sometime
in the future. Time will tell. You know, the
proof will be in the pudding, so they say.
But it certainly looks exciting. I want to
thank you Jim for being with us and we look
forward to keeping up with you in the
future. So thank you very much. # # #

Sector Newswire has identified the
following research links for further DD on dynaCERT Inc.

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materially from actual events or results. Articles, excerpts,
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